STULZ-CHSPL (INDIA) PRIVATE LIMITED,MUMBAI V. DCIT 16(2), MUMBAI

ITA 2665/MUM/2025

AI Insights

The case involves Stulz-CHSPL (India) Private Limited, which appealed against the order of the Principal Commissioner of Income Tax - 8, Mumbai. The dispute centered on the assessment year 2020-21, where the Principal Commissioner had set aside the original assessment order, believing it to be erroneous and prejudicial to the interest of the revenue. The original assessment had accepted a deduction claimed by the assessee for CSR expenses under section 80G. The Principal Commissioner contested this, leading to the appeal. The Tribunal examined whether the Principal Commissioner's intervention under section 263 was justified, ultimately finding it to be a mere change of opinion on a highly debatable issue.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633415 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2020-2021
• Other Referred Cases: Motilal Oswal Securities Ltd. (ITA No. 1795/Mum/2023, order dated 18.08.2023), Allegis Services India Pvt. Ltd. (ITA No. 1693/Bang/2019), JMS Mining Pvt. Ltd. [130 taxmann.com 118 (Kolkata Trib.)], Elan Pharma (India) Pvt. Ltd. vs. PCIT in ITA No. 2419/Mum/2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KAVITA P. KAUSHIK; DR
• Assessee Lawyers: MADHUR AGRAWAL; AR
• Keywords: Set aside; Difference of opinion; Change of opinion; Assessment record; Revision of order
• Section: 143(3); 263; 80G

Judgement Text

" | आयकर अपीलीय अिधकरण ा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 2665/Mum/2025 Assessment Year: 2020-21 Stulz-CHSPL (India) Private Limited 6, Jagruti Industrial Estate Mogul Lane, Mahim Mumbai - 400016 [PAN: AABCC5320P] Vs DCIT-16(2) अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Madhur Agrawal, A/R Revenue by : Ms. Kavita P. Kaushik, Sr. D/R सुनवाई की तारीख/Date of Hearing : 10/06/2025 घोषणा की तारीख /Date of Pronouncement: 13/06/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order of the ld. Principal Commissioner of Income Tax – 8, Mumbai [hereinafter “the ld. Pr. CIT”] dated 20/02/2025 framed u/s 263 of the Act, pertaining to AY 2020-21. 2. The sum and substance of the grievance of the assessee is that the ld. Pr. CIT erred in assuming jurisdiction u/s 263 of the Act and further erred in holding that the assessment order dated 06/09/2022 is not only erroneous but prejudicial to the interest of the revenue. 3. Briefly stated the facts of the case are that the assesse filed its return of income on 06/02/2021 declaring total income at Rs. 32,00,28,100/-. The 2 I.T.A. No. 2665/Mum/2025 return was selected for scrutiny assessment and assessment was framed u/s 143(3) r.w.s. 144B of the Act on total income at Rs. 32,00,28,100/-. 4. On perusal of the assessment records, the ld. Pr. CIT found that the assessee has deposited Rs. 75,00,000/- towards CSR expenses which was added back by the assessee in its computation of income and claimed as deduction on donation u/s 80G of the Act. The ld. Pr. CIT was of the firm belief that this action of the assessee accepted by the AO has made the assessment order not only erroneous but also prejudicial to the interest of the revenue and accordingly set aside the assessment order and directed the AO to pass a fresh order. 5. We have given a thoughtful consideration to the order of the ld. Pr. CIT. We are of the considered view that the issue raised by the ld. Pr. CIT is a highly debatable issue as the Co-ordinate Benches of the Tribunal have taken a consistent view that CSR expenditure can be claimed as expenditure u/s 80G of the Act in the cases of Motilal Oswal Securities Ltd. (ITA No. 1795/Mum/2023, order dated 18.08.2023), Allegis Services India Pvt. Ltd. (ITA No. 1693/Bang/2019), JMS Mining Pvt. Ltd. [130 taxmann.com 118 (Kolkata Trib.)] and Elan Pharma (India) Pvt. Ltd. vs. PCIT in ITA No. 2419/Mum/2025. 6. As the issue is highly debatable, any view taken by the AO during the course of original assessment proceedings has to be considered as a plausible view and the view taken by the ld. Pr. CIT, howsoever plausible, is nothing but a change of opinion for which jurisdiction u/s 263 of the Act cannot be assumed. Considering the facts of the case in totality, we 3 I.T.A. No. 2665/Mum/2025 set aside the order of the ld. Pr. CIT and restore that of the AO dated 06/09/2022. 7. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 13th June, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 13/06/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0014ितिलिप अ\u0019ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014 थ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु!)अपील (/ The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "